A Good Rule of Thumb for the 95% Confidence Interval

question 27

True/False

A good rule of thumb for the 95% confidence interval for the maximum likelihood estimate is the range of values that lie within 1.92 log-likelihood values of the maximum likelihood estimate.

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Definitions:

Price-Inelastic

Describes a situation where the demand for a good or service is relatively unchanged despite changes in its price.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell, usually upward sloping.

Budget Proportion

The allocation of financial resources among various categories or items in a budget.

Necessity

A good or service that is essential for living and is deemed indispensable.